Presentation on theme: "Guy Daly and Kevin Gulliver"— Presentation transcript:
1 Guy Daly and Kevin Gulliver Value for Whose Money? Housing Perspectives on VFM, Social Value and Social AccountingGuy Daly and Kevin GulliverHOUSING STUDIES ASSOCIATION CONFERENCE APRIL 2014
2 Value for Whose Money? Introduction Aims of the paper Evolution of value for moneyConceptualising social value‘Measuring Up’ VFM and social valueA Housing Association case studyConclusion
3 Introduction Austere times: But value for money social landlords are increasingly having to provide improved value for money as part of the government's public debt reduction strategyBut value for moneyamounts to much more than cutting costs and/or services‘Big society’ and ‘localism’:social landlords are aiming to increase and measure the social value of their activities
4 Aims of the paperThe paper aims to synthesise key elements of the value for money (VFM) and social value agenda to gauge how social landlords are delivering and accounting for social value generationThe paper presents findings from a recent social accounting and audit exercise with a major housing association group in the Midlands.The paper finally draws some initial conclusions about how and for whom social landlords are creating social valuewith a retrenching local state and public sectorwith a growth in needs within the communities that social housing providers tend to operate
5 Context Value for money (VFM) Austere times and reductions in expenditureSocial housingBenefits/welfare reformLocal government
6 Evolution of value for money (1) The three Eseconomy, efficiency, effectivenessCCT and, later, Best ValueQuality marksCitizen’s chartersJohn Major’s apostropheStock options appraisals in social housing
7 Evolution of value for money (2) Gershon review 2004produce and/or improve efficiency in social housing£325 millioneffectiveness of procurementreduce back office and transactional costs.reductions in capital works.creation of group structures and mergerscounter productivenarrow focusinsufficient attention paid to ‘public values, equity and social good’stifling of innovation and creativityMullins (2010)
8 Evolution of value for money (3) Housing Corporation’s Operating Costs Initiative 2006Housing associations’ league table of economic performanceAgain, mergers and reductions in management costsBigger groups, less community focused?
9 Evolution of value for money (4) Coalition GovernmentAustere timesReduce costsCuts in welfareCuts in capital programmesSubsidising demand rather than supplySocial housingVFM standardBoard responsibility
10 Conceptualising Social Value (1) “(Our) approach is to maximise VFM in the context of the sector’s social purpose and operating environment…. Housing associations are social businesses that exist to produce social value in a broad sense…But whilst associations undoubtedly provide social value, it does not follow that they provide VFM. Like any system of production, the delivery of social value is not always as economical, efficient and effective as it might be.” Nat Fed and Housemark: Social Hearts and Business Heads Smedley (2012)
11 Conceptualising Social Value (2) Competing interpretations of valueSome value/values easier to measure than othersVarious approachesSAASROICSRPromotion of SROI (as opposed to SAA) potentially one dimensional
12 ‘Measuring Up’ VFM and social value - A Housing Association case study Human City Institute analysisApril 2010 to March 2012Medium sized HA3,500 propertiesSocial enterprise£30M turn-over
13 Case Study (2) Hybrid Methodology Gulliver and Prentice (2013) Environmental ScanningSocial Auditing and AccountingSocial Return on Investment and Social ValueCommunity Impact AnalysisValue for MoneyCustomer and Stakeholder InvolvementStakeholder Oversight and Co-ProductionGulliver and Prentice (2013)Gulliver (2014)
14 Measuring UP – 5 StepsWhat are the housing association’s mission, corporate objectives and activities – its ‘Governance Statement’?What is the context within which the housing association tries to realise its mission, meet its objectives and deliver its services?What resources are brought to bear and what are the housing association’s totality of activities?How can the results of the housing association’s work be evaluated in terms of social value created and direct and indirect impact on communities and local economies?How can the outcomes achieved by the housing association be quantified, summarised and presented?
15 Measuring Up – Case Study Findings and outcomes Social audit balance sheetAligned to and development ofupdated values and mission of the HASocial investment strategyAligned to tenant and community prioritiesA return to (and on!) social value(s)£ stretchLocal employmentLocal social enterprises’ supportReturn of investment back into the HANot cost cutting but social value creation
16 Conclusion – Value for whose money? Who defines value?How should value be measured?What is the purpose of VFMCost and expenditure reduction?Or social value to/for tenants and communities?Final thoughtIf VFM is about reducing costs/expenditureWho benefits?